2 ms·
Most of the big post-IPO companies hand out stock on a regular basis as a bonus or a top-up to the actual pay. The corp in question for me was Amazon. Around 1
by mabbo 9y ago
Most of the big post-IPO companies hand out stock on a regular basis as a bonus or a top-up to the actual pay.
The corp in question for me was Amazon. Around 1/3 of my pay (more some years) was in the form of AMZN stock that vested every six months. Stock, not Stock Options. No paying for it, no decisions, just boom, you now own X more stocks and how would you like to pay the income tax on that?
- iaw 9y agoWhat's worth more? A $200K lump sum in 20 years or $10K every year for the next 10? The answer depends on how much interest you can earn on the $10K/year. At around ~7% the $10K/year is worth more than the $200K in 20 years. Your stock grants from Amazon are equivalent to the $10K/year, the options, if you get them, are equivalent to the $200K. The actual weighting is impossible to get precisely but the way you approach it can give you better accuracy than just comparing apples to oranges. Good news, even if it's horrible, ~2 years is the typical employee tenure so you probably wont be there long. If you are and it's going to be successful you'll be able to renegotiate based on foregone comp at Amazon.
- loeg 9y agoEven assuming a $200k payout after 20 years is a very optimistic startup outcome.